Rewards have been shown to improve behavior and cognitive processes implicated in attention‐deficit hyperactivity disorder (ADHD), but the information‐processing mechanisms by which these improvements occur remain unclear. We examined the effect of performance‐based rewards on ERPs related to processing of the primary task stimuli, errors, and feedback in children with ADHD and typically developing controls. Participants completed a flanker task containing blocks with and without performance‐based rewards. Children with ADHD showed reduced amplitude of ERPs associated with processing of the flanker stimuli (P3) and errors (ERN, Pe), but did not differ in feedback‐processing (FRN). Rewards enhanced flanker‐related P3 amplitude similarly across groups and error‐related Pe amplitude differentially for children with ADHD. These findings suggest that rewards may improve cognitive deficits in children with ADHD through enhanced processing of relevant stimuli and increased error evaluation.